Japan likely to resume insurance on exports to Cuba

Japan likely to resume insurance on exports to Cuba
Oct 6 03:49 AM US/Eastern

TOKYO, Oct. 6 (AP) - (Kyodo)—A government-backed body is likely to
resume accepting new applications for trade insurance on exports to Cuba
as early as December, Japanese officials said Monday.

Nippon Export and Investment Insurance and Cuba's central bank have
struck a basic deal that the Japanese government-backed body will insure
up to a total of 6 billion yen in 2009 for business with Cuba, the
officials said.

The underwriter suspended accepting new trade insurance applications for
business with Cuba in August after the central bank failed to pay for
Japanese imports on time.

The insurer, also known as NEXI, will formally decide on the resumption
after seeing whether the central bank will be able to pay part of its
liabilities, the officials said. In 2008, it insured a total of 22
billion yen in connection with Japanese exports to Cuba.

The central bank, which handles settlements for Cuba with Japanese
firms, has a debt of about 25.5 billion yen from NEXI.

The central bank has promised to pay its debt to NEXI over the next
three to four years, the officials said.

Cuba was cash-short on the back of rising fuel and food prices,
according to the officials.

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